Adidas Q1 preliminary performance: revenue exceeds 5.4 billion euros, operating profit surges by 460% to 300 million euros

Recently, Adidas announced on its official website the preliminary performance for the first quarter of 2024: revenue reached 5.458 billion euros, a year-on-year increase of 4% (8% excluding the impact of exchange rates); operating profit reached 336 million euros, a 460% increase compared to a profit of 60 million euros in the same period in 2023; gross profit margin increased to 51.2%, from 44.8% in the same period in 2023.

At the same time, Adidas also disclosed the performance of Yeezy - with revenue of approximately 150 million euros and operating profit of around 50 million euros. Adidas emphasized that it will continue to sell Yeezy inventory at cost price in the future, expecting to generate approximately 200 million euros in additional sales revenue without affecting operating profit.

Previously, Adidas expected sales for the 2024 fiscal year to grow at a mid-single-digit rate (calculated at fixed exchange rates), with the core business (excluding Yeezy) achieving high single-digit growth for the whole year, at least 10% growth in the second half, and projected operating profit of around 500 million euros in 2024. Due to the first-quarter performance surpassing expectations, Adidas adjusted its full-year performance expectations, now expecting revenue to grow at a mid to high single-digit pace (calculated at fixed exchange rates) and operating profit to reach 700 million euros.

In addition, Adidas global revenue in 2023 was 21.427 billion euros, flat compared to the previous year on a currency-neutral basis; operating profit was 268 million euros, nearly 1 billion euros higher than initially expected; gross profit margin increased to 47.5%; and a net loss of 58 million euros, the first loss since 1992. Specifically in the Greater China market, revenue in 2023 reached 3.19 billion euros, an 8.2% increase year-on-year; with fourth-quarter revenue of 670 million euros, a 36.8% increase year-on-year, achieving growth for three consecutive quarters.